Hecla Announces Q2 2021 Production
July 13 2021 - 6:30AM
Business Wire
Hecla Mining Company (NYSE:HL) today announced its preliminary
silver and gold production for the second quarter of 2021.1
HIGHLIGHTS
- Silver production of 3.5 million ounces, an increase of 4% due
to full production at Lucky Friday.
- Gold production of 59,139 ounces, a decrease of 1%.
- Zinc production decreased 4% due to lower grades at Greens
Creek and lead production increased 29% due to Lucky Friday
production.
- Production of all metals was higher than the first quarter of
2021.
- Silver equivalent production of 10.1 million ounces or gold
equivalent production of 148,161 ounces.2
- Quarter-end cash position of approximately $181 million.
“With steady growth in silver production at the Lucky Friday
Mine and solid operating performance from our Greens Creek Mine, we
achieved our second highest quarterly silver production since
2016,” said Hecla’s President and CEO, Phillips S. Baker, Jr. “This
strong performance combined with steady prices delivered an
increase of approximately $41 million in cash, the fifth
consecutive quarter of increasing cash reserves and one of the
highest increases in Hecla’s history. With the Company’s U.S.
vaccination rate higher than the U.S. average including Greens
Creek at a nearly 90% vaccination rate, and Casa Berardi
vaccinations increasing, we expect to build on these results.”
OPERATIONS
Greens Creek
At the Greens Creek Mine, 2.6 million ounces of silver and
12,859 ounces of gold were produced. The decrease in silver
production compared to the second quarter of 2020 was due to lower
grades resulting from mine sequencing. The mill operated at an
average of 2,362 tons per day (tpd).
Casa Berardi
At the Casa Berardi Mine, 31,332 ounces of gold were produced.
The increase in gold ounces compared to the second quarter of 2020
was due to higher mill throughput, partially offset by lower
grades. The mill operated at an average of 4,117 tpd.
- See cautionary statement regarding preliminary statements at
the end of this release.
- Silver and gold equivalent calculation based on average actual
prices for each metal in the first quarter as follows: $26.70 for
Ag, $1,816 for Au, $0.96 for Pb, and $1.32 for Zn.
Lucky Friday
At the Lucky Friday Mine, 913,294 ounces of silver were produced
in the quarter, an increase of 95% compared to the second quarter
of 2020 due to the return to full production in the fourth quarter
of 2020. The mill operated at an average of 906 tpd.
Nevada Operations
At the Nevada operations, 14,947 ounces of gold and 45,125
ounces of silver were produced from processing previously
stockpiled ore, including oxide material processed at the Midas
mill and a bulk sample of refractory material processed at a
third-party facility. With the completion of processing the oxide
material, the Fire Creek Mine and Midas mill were placed on care
and maintenance during the quarter. In the second half of 2021,
approximately 10,000 tons of refractory material is expected to be
processed as a test at a third-party autoclave facility.
Development for the Hatter Graben deposit at Hollister and
exploration at Midas are ongoing.
PRODUCTION SUMMARY
Second Quarter Ended
Six Months Ended
June 30, 2021
June 30, 2020
June 30, 2021
June 30, 2020
PRODUCTION
Increase/
(Decrease)
Increase/
(Decrease)
Silver
3,524,782
3,403,781
4
%
6,984,227
6,649,250
5
%
Gold
59,139
59,982
(1
)%
111,143
118,774
(6
)%
Lead
11,541
8,977
29
%
22,245
14,870
50
%
Zinc
17,211
17,855
(4
)%
33,318
30,702
9
%
Greens Creek - Silver
2,558,447
2,753,919
(7
)%
5,143,317
5,529,626
(7
)%
Greens Creek - Gold
12,859
13,104
(2
)%
26,125
25,377
3
%
Lucky Friday - Silver
913,294
469,537
95
%
1,777,194
565,285
214
%
San Sebastian - Silver
- -
158,842
N/A
- -
505,467
N/A
San Sebastian - Gold
- -
1,331
N/A
- -
4,133
N/A
Casa Berardi - Gold
31,332
30,756
2
%
67,522
57,508
17
%
Nevada Operations - Silver (oz)
1
45,125
15,988
182
%
45,125
37,443
21
%
Nevada Operations - Gold (oz) 1
14,947
14,791
1
%
17,495
31,756
(45
)%
- At the Nevada operations, stockpiled ore milled in the second
quarter of 2021.
STRENGTHENING THE BALANCE SHEET
Cash and cash equivalents are expected to be approximately $181
million as of June 30, 2021, with the revolving line of credit
undrawn.
ABOUT HECLA
Founded in 1891, Hecla Mining Company (NYSE:HL) is the largest
silver producer in the United States. In addition to operating
mines in Alaska, Idaho, and Quebec, Canada, the Company owns a
number of exploration and pre-development projects in world-class
silver and gold mining districts throughout North America.
Cautionary Statements Regarding Estimates and Forward-Looking
Statements
All measures of the Company's second quarter 2021 operating and
financial results and conditions contained in this release are
preliminary and reflect the Company’s expected results as of the
date of this release. Actual reported second quarter 2021 results
are subject to management's final review as well as review by the
Company's independent registered accounting firm and may vary
significantly from current expectations because of a number of
factors, including, without limitation, additional or revised
information and changes in accounting standards or policies or in
how those standards are applied.
Statements made or information provided in this news release
that are not historical facts are "forward-looking statements"
within the meaning of the Private Securities Litigation Reform Act
of 1995 and "forward-looking information" within the meaning of
Canadian securities laws. Words such as “may”, “will”, “should”,
“expects”, “intends”, “projects”, “believes”, “estimates”,
“targets”, “anticipates” and similar expressions are used to
identify these forward-looking statements. Forward-looking
statements in this news release may include, without limitations,
in the second half of 2021, approximately 10,000 tons of refractory
material is expected to be processed as a test at a third-party
autoclave facility. The material factors or assumptions used to
develop such forward-looking statements or forward-looking
information include that the Company’s plans for development and
production will proceed as expected and will not require revision
as a result of risks or uncertainties, whether known, unknown or
unanticipated, to which the Company’s operations are subject.
Forward-looking statements involve a number of risks and
uncertainties that could cause actual results to differ materially
from those projected, anticipated, expected, or implied. These
risks and uncertainties include, but are not limited to, metals
price volatility, volatility of metals production and costs,
litigation, regulatory and environmental risks, operating risks,
project development risks, political risks, labor issues, ability
to raise financing and exploration risks and results. Refer to the
Company's Form 10-K and 10-Q reports for a more detailed discussion
of factors that may impact expected future results. The Company
undertakes no obligation and has no intention of updating
forward-looking statements other than as may be required by
law.
Category: Press Release
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version on businesswire.com: https://www.businesswire.com/news/home/20210713005343/en/
Russell Lawlar Sr. Vice President – CFO and Treasurer
Jeanne DuPont Senior Communications Coordinator
800-HECLA91 (800-432-5291) Investor Relations Email:
hmc-info@hecla-mining.com Website: www.hecla-mining.com
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